Philadelphia, PA: A complaint has been filed in the United States District Court for the District of New Jersey on behalf of all New Jersey homeowners whose mortgage loans have been serviced by CitiMortgage, Inc., and who, since April 13, 2009, (1) have entered into a Trial Period Plan ("TPP") contract with CitiMortgage and made all payments required by their TPP contract, but (2) have been denied a permanent loan modification agreement that complied with the U.S. Department of the Treasury's Home Affordable Modification Program ("HAMP") rules.
The Complaint alleges that CitiMortgage accepted billions in government bailout money under the Troubled Asset Relief Program ("TARP") earmarked to help struggling homeowners avoid foreclosure. CitiMortgage, like other TARP-funded financial institutions, is contractually obligated to modify mortgage loans it services for homeowners who qualify under HAMP, a federal program designed to abate the foreclosure crisis by providing mortgage loan modifications to eligible homeowners.
According to the lawsuit, CitiMortgage systematically slows or thwarts homeowners' requests to modify mortgages, depriving borrowers of federal bailout funds that could save them from foreclosure. The bank ends up reaping the financial benefits provided by TARP-funds and also collects higher fees and interest rates associated with stressed home loans.
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After being behind on payments for only 3 months I contacted Citi for a solution and they said not to make payments and file for a modification. Needless to say there hidden agenda was to acquire my house through foreclosure. I am now almost five years later with arrears beyond affordable, no modification in sight ,one foreclosure notice that required bankruptcy to stop. Still no modification in sight and no alternative options from them. I was forced to relocate in order not to be homeless and now they're using that against me. I am hoping to file a lawsuit against Citi for damages if I can find a contingency attorney.
Posted by GBF
I was denied a loan modification through Citimortgage. They said I was not eligible because I was current on my loan and had never missed any payments. They said I must miss 3 payments before they could help. Thankfully I valued my credit score and didn't do it!
Posted by Michelle Conway
CitiMortgage processed foreclosure proceedings in April, 2015 whie I continued to pay an agreed monthly amount to CitiMortgage. I was current with the regular monthly mortgage payments to CitiMortgage when I entered the unemployment forebearance program. I was unexpectedly terminated from my previous job after being injured on the job. Theses injuries also required surgery and physical therapy. I was always in touch with my assigned housing specialist advising of my financial updates. Assuring her that I have all intentions of psying the past due amounts as well as making actual monthly payments. I also sent an update income verification that money will be on a schedule to be paid to me. CitiMortgage sent letters Jan thru February that my information was received for review. March 17,2015 I received a letter stating no contact from me and the entire pastdue amount is due to avoid foreclosure. I was told by a CitiMortgage representative the 2013 signed tax return was not received. I have a scanned copy of the tax return on January 20th, 2013 that CitiMortgage entered the return in the records. I also have a recording that a CitiMortgage representative said the return was receivedl. I received court documents and went to court June 2015 along with a foreclosure attorney to prevent being homeless. Also contacting my local senators office is really what helped. Without them no home. CitiMortgage also added two to three tittle fees inspection fees reinstatement fees court fees and attorney fees were added . I never received a denial that the Unemployment forebearance program was not going to be extended. The housing specialist never advised that my property was being prepared for forclosure. I never missed a month not paying CitiMortgage. Dealing with this company has been a mental nightmare. I wish everybody going thru it with CitiMortgage CitiBank or institutions with workers fattening their pockets at others expense. I always say nothing positive comes from negative energy.
Posted by ANIT SUMNER
MY HUSBAND SUFFERED A STROKE AND WAS A ENGINEER WE WENT THROUGH THE MODIFICATION PROCESS AND THEY TOLD USE TO SKIP THREE MONTHS I WAS LEARY MY HUSBAND IS LAYING IN A HOSPITIAL BED IN OUR LIVING ROOM WE WENT FROM MAKING 85,000 TO MY 900 .00 SOCIAL SECURITY OVER NIGHT HE WAS PARALYZED THE PUT US IN FORCLOSURE AND WE HAD TO PAY 9000. AT THE END OF THE MODICATION ,I WROTE MY SENATOR AND CONGRESSMEN AND CALLED THEM EVERY DAY HAD IT NOT BEEN FOR THE CHURCH WE WOULD OF LOST OUR HOME WE GOT THE MODICATION BUT WITH A 9000 PRICE TAG I BURIED MY HUSBAND A FEW MONTHS LATER IM SURE THE STRESS OF US HAVING NO WHERE TO LIVE TOOK A TOAL TOO THIS IS WRONG AND NEEDS TO BE EXPOSED
Posted by Susan Lazzaro
I have been fighting with CitiMortgage for 5 years and have been paying a lawyer for that long. They have denied me a loan modification 3 times and when I offered to pay all interest I owed along with penalties and finance charges and then to continue my loan where I left off they turned down my offer wanted all or none.
Now I have been threaten with them suing me for the full amount of my loan or lose my house. They only way to save it was to enter into this trial period where they doubled the amount of my monthly payment, doubled the length of my loan and doubled the interest rate.
I had worked extremely hard over the past 3 years 100+ hours a week and have out priced myself for a decent modification. However I cannot keep up with this pace and will eventually have to give up one or two of my 4 jobs and I will end up defaulting on this new loan they gave me.
Posted by Donna Yetto
I lost my house after making the trial payments, instead of lowering my interest rate, which I owed 120,000, they sold it for 32,000. It has been sitting empty for the past 2 years. That really helped the community..........
Posted by Audrey Watkins-Kizee
We were denied a modification by CitiMortgage after we paid 10 months of trial payments and sent in all paperwork. Now our house is in foreclosure.
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